How to Manage Risk Professionally

Let's say a hiring manager suggests a candidate who ends up not working out. The employee is completely ineffective, unpredictable, or even harmful beyond the first six months of gentle nudging and mentoring. You paid money for shoddy work. The employee ruined several crucial business contacts, which cost you the game. You must let him go.

Due to the fact that you are dealing with ambiguous circumstances, discrimination and unjust dismissal claims can be complicated. An ex-employee may assert that he was fired or subjected to unjust treatment because of his gender, color, age, or religion. The litigation might easily devolve into the employer's word against the complainant's word if the business doesn't thoroughly and reliably document the employees' shortcomings.

Potential issues that could occur

Due to the fact that you are dealing with uncertain circumstances, discrimination and unjust dismissal claims can be complicated. An former employee may assert that he was fired or subjected to unjust treatment because of his gender, color, age, or religion. The litigation might easily devolve into the employer's word against the complainant's word if the business doesn't thoroughly and reliably document the employees' shortcomings.

Even if the complainant loses in court, legal action by a fired employee can be costly. Both time and legal costs are involved.

Most of the time, the employer picks up the entire tab. Even if you are able to take the recruiting agency to court for breach of contract or another reason, your business has already suffered and now needs to restart the hiring process.

Ideas for Risk Management

  • Make sure to hold frequent disciplinary discussions with him and to record them, clearly outlining your assessment of his performance.

  • Create a standardized employee evaluation process so that all employees' performance is assessed using the same criteria.

  • Learn about the obligations that the law places on you with regard to equal opportunity employment.

  • Employer contracts can help you limit your liability. What you anticipate of the employee should be clearly spelled out in the agreement. These contracts give you a methodical, point-by-point method of identifying the shortcomings of the former employee.

  • Clearly state the reasons for the employee's termination and give specific examples of his poor performance. Inform him of the terms of his severance package. Employees should be let go gently with best wishes for their future aspirations. Always keep a witness there who takes thorough notes.

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